Retirement savings are a large part of most everyone's estate, and for many the largest asset. Retirement has serious income tax and estate tax effects. How do we coordinate estate planning and retirement plans?

• Pitfalls of Beneficiary Designation

• Generally name your spouse first, then your revocable living trust as contingent beneficiary
• Disclaimer strategy gives maximum flexibility to fund bypass trust and to use stretch out inter-generational IRAs

Spouse has sufficient non-retirement assets Maintain control who receives asset & how they are spent

Trust valid under state law All trust beneficiaries individuals Beneficiaries of trust identifiable from trust Copy of trust or information about trust provided to plan administrator Trust irrevocable at death

• Legal refusal to accept inheritance or gift
• Timely made permits selecting from primary or contingent beneficiaries of retirement benefits with tax considerations determined at time of death rather than time of initial planning

Approach permits accruing investment gain for more years

Provides maximum long-term income tax deferral Keeps all retirement plan proceeds in the family  Generally use when one's spouse has sufficient non-retirement assets